To All of Our Followers,
Please continue to follow us at www.assess-it.com.
We're looking forward to seeing you there.
Best regards,
DAGreer
Friday, November 26, 2010
Friday, October 29, 2010
Assess-IT will once again be providing Independent Process Improvement Consulting Services
It is with great pleasure that I can announce, on November 2, 2010 Assess-IT will once again be providing Independent Process Improvement Consulting Services. Our consulting practice focuses on Project Management and Systems and Software Engineering Process Improvement. Building on a number of different models, methods and tools, we predominantly apply CMMI, Lean, Six Sigma, TOC, Agile and ITIL to our consulting solutions.
I look forward to continuing to blog about topics of general interest in the areas mentioned above.
I look forward to continuing to blog about topics of general interest in the areas mentioned above.
Sunday, April 18, 2010
QUALITY - Cost Center or Profit Center
QUALITY - Does it cost you money or make you money?
Crosby's message was that a quality program, properly applied, returned money to the business bottom line, far in excess of the costs of operating the quality system. Quality saves/makes you money in a couple of ways: real savings, and cost avoidance.
Real Savings
If you add/delete/modify your production processes it is quite likely that you will become both more efficient and produce better products. Efficiency translates directly to profit; you can make more with less, and it'll be better. You may be able to charge more for better products. This is the typical argument made for process improvement.
Avoiding Costs (Real Savings Too!)
Avoiding costs that historical data shows you would have otherwise incurred is equivalent to profit; it is money that you can now use productively to advance the business rather than to fix defects. Just because you don't have a production development phase on the project schedule for fixing defective products does not mean that it's not there. You have to allocate resources, time, money, equipment, etc. to fix the defective things before you deliver them.
The Problem that the Quality People Face
The sooner that quality organizations can convince management that the quality organization is a profit center rather than a cost center the better off the quality organization(s) will be. The numbers come out the same; however, everyone likes profit, it sounds so much better than we avoided costs. This is a marketing problem that the quality folks have not yet become very adept at solving.
Crosby's message was that a quality program, properly applied, returned money to the business bottom line, far in excess of the costs of operating the quality system. Quality saves/makes you money in a couple of ways: real savings, and cost avoidance.
Real Savings
If you add/delete/modify your production processes it is quite likely that you will become both more efficient and produce better products. Efficiency translates directly to profit; you can make more with less, and it'll be better. You may be able to charge more for better products. This is the typical argument made for process improvement.
Avoiding Costs (Real Savings Too!)
Avoiding costs that historical data shows you would have otherwise incurred is equivalent to profit; it is money that you can now use productively to advance the business rather than to fix defects. Just because you don't have a production development phase on the project schedule for fixing defective products does not mean that it's not there. You have to allocate resources, time, money, equipment, etc. to fix the defective things before you deliver them.
The Problem that the Quality People Face
The sooner that quality organizations can convince management that the quality organization is a profit center rather than a cost center the better off the quality organization(s) will be. The numbers come out the same; however, everyone likes profit, it sounds so much better than we avoided costs. This is a marketing problem that the quality folks have not yet become very adept at solving.
Thursday, February 4, 2010
You DONT have to rearchitect your processes to be CMMI compliant
I'm still surprised at how many clients have the misperception that they have to rearchitect their processes to be CMMI compliant. There is nothing in the model that says you have to contort yourselves into some CMMI shaped box to comply with the guidelines in the model. In fact, it's nearly impossible to do so and still carry on with your business model. The CMMI is written as functional stovepipes (in alphabetical order), and your company processes, in all likelihood, are written to accomodate your business pursuit and delivery lifecycles.
The real trick to becoming CMMI compliant is to capture all of your business and technical processes, arrange them in some reasonable lifecycle order, then map that order to the CMMI to see where you have adequate model coverage and where you don't, develop a set of plans to address the gaps, and finally implement the plans to close the gaps.
If you have one monolithic Project Management process that addresses all the practices in the PP, PMC, IPM, and RSKM PAs, so be it. Don't go rearranging everything to match the model. Put together a mapping matrix that allows you to keep everything where it is, while at the same time allowing you to check yourselves against the model's guidelines.
The real trick to becoming CMMI compliant is to capture all of your business and technical processes, arrange them in some reasonable lifecycle order, then map that order to the CMMI to see where you have adequate model coverage and where you don't, develop a set of plans to address the gaps, and finally implement the plans to close the gaps.
If you have one monolithic Project Management process that addresses all the practices in the PP, PMC, IPM, and RSKM PAs, so be it. Don't go rearranging everything to match the model. Put together a mapping matrix that allows you to keep everything where it is, while at the same time allowing you to check yourselves against the model's guidelines.
Tuesday, January 19, 2010
CMMI SCAMPI Appraisals are CHEAP, Relatively Speaking
Quite a few clients are surprised by the cost of a SCAMPI Appraisal. While a SCAMPI Appraisal may seem expensive, when considered within the context of what it costs to implement a process improvement program within an organization, well, a SCAMPI Appraisal is CHEAP, relatively speaking.
Industry data show that a Process Improvement (PI) effort takes on the order of a 5-7% investment of resources: planning, improving, training, measuring, estimating, quality assurance, configuration management, status, etc. Essentially 5 FTEs of your 100 FTE organization need to be dedicated to your PI effort. Similarly, PI will take 5 weeks of effort on your 100 week project and $5K will be spent on your $100K project. Industry data also show that you can expect to receive on the order of a 4:1 Return On Investment (ROI).
If you create a process group early on, and allocate the 5-7% that we expect it to take, when it comes time for the appraisal, you’ve already got the appraisal resources you need, without taking away from billable work at the always critical stage. The other people in the organization will also realize that senior management takes this effort seriously by their demonstrated and not just verbalized commitment to the effort.
PI, if it’s really important to your organization, needs to be treated like any other important project. To not give it the benefit of “Real Project” status is to all but doom it to failure. “Real Projects” get real project managers, they have Work Breakdown Structures (WBSs)/Task Lists/Deliverables, they have identified staff who are committed to the effort at a negotiated effort level at a specific frequency of interaction over a particular duration, real projects get budget, schedule, resources, training, standard processes, and senior management face time.
So . . .How much does an appraisal really cost; IT DEPENDS :-)
In a typical 300 person development organization it takes roughly 3 to 4 people to generate $1M in revenue. So our hypothetical organization is generating $75-$100M. A 5% commitment to PI would be $7.5-$10M. Please feel free to substitute your own numbers.
A 4:1 ROI benefit to the organization would be $30-$40M or 4 times the $7.5M investment (almost 50% equivalent improvement organizationally) in reduced waste, greater throughput capability, more profitability, increased customer satisfaction, fewer defects, faster turn-around time, etc.
A fully featured appraisal with all the bells and whistles, planning, training, consulting, paperwork, materials, travel, etc., should cost on the order of $100K. A $100K appraisal investment against a $10M PI Project investment is 1%. If your current project estimating methodology is not producing estimates that are accurate to within 1% of the actual outcomes, I can legitimately (tongue in cheek) make the argument, using your data, that the appraisal is free, because the margin of error exceeds the appraisal cost.
Get Started Now, things will never really change until you change them.
Industry data show that a Process Improvement (PI) effort takes on the order of a 5-7% investment of resources: planning, improving, training, measuring, estimating, quality assurance, configuration management, status, etc. Essentially 5 FTEs of your 100 FTE organization need to be dedicated to your PI effort. Similarly, PI will take 5 weeks of effort on your 100 week project and $5K will be spent on your $100K project. Industry data also show that you can expect to receive on the order of a 4:1 Return On Investment (ROI).
If you create a process group early on, and allocate the 5-7% that we expect it to take, when it comes time for the appraisal, you’ve already got the appraisal resources you need, without taking away from billable work at the always critical stage. The other people in the organization will also realize that senior management takes this effort seriously by their demonstrated and not just verbalized commitment to the effort.
PI, if it’s really important to your organization, needs to be treated like any other important project. To not give it the benefit of “Real Project” status is to all but doom it to failure. “Real Projects” get real project managers, they have Work Breakdown Structures (WBSs)/Task Lists/Deliverables, they have identified staff who are committed to the effort at a negotiated effort level at a specific frequency of interaction over a particular duration, real projects get budget, schedule, resources, training, standard processes, and senior management face time.
So . . .How much does an appraisal really cost; IT DEPENDS :-)
In a typical 300 person development organization it takes roughly 3 to 4 people to generate $1M in revenue. So our hypothetical organization is generating $75-$100M. A 5% commitment to PI would be $7.5-$10M. Please feel free to substitute your own numbers.
A 4:1 ROI benefit to the organization would be $30-$40M or 4 times the $7.5M investment (almost 50% equivalent improvement organizationally) in reduced waste, greater throughput capability, more profitability, increased customer satisfaction, fewer defects, faster turn-around time, etc.
A fully featured appraisal with all the bells and whistles, planning, training, consulting, paperwork, materials, travel, etc., should cost on the order of $100K. A $100K appraisal investment against a $10M PI Project investment is 1%. If your current project estimating methodology is not producing estimates that are accurate to within 1% of the actual outcomes, I can legitimately (tongue in cheek) make the argument, using your data, that the appraisal is free, because the margin of error exceeds the appraisal cost.
Get Started Now, things will never really change until you change them.
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